Servitizing manufacturers: The impact of service complexity and contractual and relational capabilities

Melanie Kreye, Jens K. Roehrich, Michael A. Lewis

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Abstract

Servitization drives manufacturing firms to develop service offerings characterised by increasing levels of complexity. This has also been termed service ladder or transformation staircase. Manufacturing companies need to adapt their organisational processes to the different stages of the service ladder to provide value to their customers. In particular, this paper focuses on contractual and relational capabilities for services of different complexities. Based on two case studies within the European Healthcare sector, we found that in a highly regulated business context, contractual capabilities only marginally differ depending on service complexity. In contrast, the importance of relational capability increases with higher levels of service complexity. Developing relational capabilities can function as a competitive advantage for manufactures moving into product-service system offerings.
Original languageEnglish
Publication date2014
Number of pages16
Publication statusPublished - 2014
Externally publishedYes
EventSeminar on Disruptive supply network models in future industrial systems: Configuring for resilience and sustainability - University of Cambridge, Cambridge, United Kingdom
Duration: 19 Sep 201320 Sep 2013

Seminar

SeminarSeminar on Disruptive supply network models in future industrial systems: Configuring for resilience and sustainability
LocationUniversity of Cambridge
Country/TerritoryUnited Kingdom
CityCambridge
Period19/09/201320/09/2013

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